Warning: strtotime(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home1/chinaves/public_html/libraries/joomla/utilities/date.php on line 56

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home1/chinaves/public_html/libraries/joomla/utilities/date.php on line 198

February 17, 2012 (Chinavestor) There are no overbought China stocks this morning other than New Oriental Edu (NYSE:EDU) and Yucheng Tech. (NASDAQ:YTEC). Baidu.com Inc. (NASDAQ:BIDU) is poised well for a rally after a blockbuster 2011 Q4 last night. That might help other internet stocks such as Sina Corp. (NASDAQ:SINA) and NetEase.com Inc. (NASDAQ:NTES).

Baidu.com Inc. (NASDAQ:BIDU) reported a 77% rise in profits while revenues beat estimates. The stock is not overbought at this point, suggesting more upside is quite possible.

But as we know, fundamental strength doesn't necessarily translate to stock price appreciation. It was just the case with NetEase.com Inc. (NASDAQ:NTES) a day earlier. Chinese online game king NetEase.com (NASDAQ:NTES) reported excellent revenue and earnings growth beating estimates, yet the stock fell two points on Thursday. Related article: NetEase reports classic triple play.

There isn't much change on the oversold China stocks list on Friday since yesterday.

Overbought A technical condition that occurs when prices are considered too high and susceptible to a decline. Overbought conditions can be classified by analyzing the chart pattern or with indicators such as the one above. A sharp advance from $15 to $30 in 2 weeks might lead a technician to believe that a security is overbought. Or, a security is sometimes considered overbought when the stock is trading out of its trading envelope and is approaching the theoretical high. It is important to keep in mind that overbought is not necessarily the same as being bearish. It merely infers that the stock has risen too far too fast and might be due for a pullback.

Oversold A technical condition that occurs when prices are considered too low and ripe for a rally. Oversold conditions can be classified by analyzing the chart pattern or with indicators such as the one above. A sharp decline from $30 to $15 in 2 weeks might lead a technician to believe that a security is oversold. Or, a security is sometimes considered oversold when the stock is trading below its trading envelope and is approaching theoretical lows. It is important to keep in mind that oversold is not necessarily the same as being bullish. It merely infers that the security has fallen too far too fast and may be due for a reaction rally.

If you like us, spread the word to the fellow investors on your favorite Social Bookmarking websites

!!! CHINAVESTOR.COM is for SALE !!!

BUY this domain with all its credentials. Chinavestor.com has been added to Google News and Finance since 2008! Huge web traffic upside potential! Website is optimized for Chinese stocks but can easily be tweaked.Contact Seller Here